Utilities Commission is getting ahead of itself

COMMENTARY

“If, at this point, the FMPA sees nothing to be gained by meeting privately with FPL executives, why would they agree to be pitted against FPL’s public relations specialists in what will surely be a high-emotion, low-information, pro-sale, pro-FPL pep rally?”

MARK SCHUMANN

March 27 - Cartoon for page 14.BSince November, one utility activist has often repeated the mantra, “elections have consequences.”  He is right; and the likely result of Scott Stradley’s re-election as chairman of the Utilities Commission is that the ardent pro-sale advocate will continue to use his position to promoting the sale of Vero Electric to FPL at any price.

Stradley, who has no formal utility experience, underscored that fact when he sent to Florida Municipal Power Agency General Manager Nicholas Guarriello an ill-timed letter that included a resume of his accounting practice.

Stradley’s letter was both an invitation and a request to Guarriello to attend what he described as a “very important meeting” of the Utilities Commission to be held March 31.  Stradley proposes to bring FPL and FMPA representatives together in the same meeting, two days before Mayor Richard Winger, City Manager Jim O’Connor and City Attorney Wayne Coment are scheduled to meet with FMPA representatives in Orlando to explore whether and under what circumstances negotiations might continue.

Not only was Stradley’s invitation to Guarriello ill-timed, it was ill-conceived. Given that FMPA leaders have made it clear they see nothing to be gained by holding further meetings with representatives of Florida Power & Light regarding Vero Beach’s FMPA contracts, why would Stradley think they would enter into the circus that will surely be the March 31 Utilities Commission meeting?  Stradley plans to devote that meeting to hearing from FPL representatives about their latest condition-laden offer.  Meanwhile, FMPA leaders have said FPL’s offer is “unworkable and unacceptable.”

If, at this point, the FMPA sees nothing to be gained by meeting privately with FPL executives, why would they agree to be pitted against FPL’s public relations specialists in what will surely be a high-emotion, low-informaiton, pro-sale, pro-FPL pep rally?

Stradley contends the City Council has directed the Finance and Utilities Commission’s to vet the concept of a partial sale, but the Council has passed no such motion.  At the March 4 Council meeting, Craig Fletcher’s motion to approve FPL’s latest proposal, including a $26 million surcharge on the customers of Vero Electric, was tabled.

The only motions the Council approved were first, a directive to the Utility and Finance Commissions to devote their March 19 meeting to a discussion of ways of lowering rates, and second, a directive to Mayor Winger to seek a meeting between himself, O’Connor, Coment, and representatives of the FMPA.

According to the official minutes of the March 4 City Council meeting, during the discussion that led to the tabling of Fletcher’s motion to approve FPL’s surcharge proposal, Councilwoman Amelia Graves said, “She felt giving a concept to their Commissions to review is futile. The Commissions need an actual contract to review and until they have a contract their Commissions cannot give an opinion. She wondered if they should ask FPL to go forward and bring back a completed contract so that then they could make a recommendation based on what the Finance and Utility Commission’s input is. They need a complete contract to review and they can’t have their Commissions review anything until that happens.”

In fact, the official minutes of the March 4 City Council meeting do not include any record of the Council directing either the Utilities or the Finance Commissions to render judgment on FPL’s proposed $26 million surcharge.

As Mayor Winger made clear that day, there are a number of other unresolved issues, all of which could significantly add to the cost of the sale.  These costs, he said, should not be born solely by Vero Electric’s customers within the city limits, but by all 34,000 customers.  Any additional costs could result in a surcharge of more than $26 million, making a decision on FPL’s proposal premature.

As eager as Stradly may be to use his position as chairman of the Utilities Commission to aid FPL is its acquisition of Vero Electric, he and his fellow Commissioners owe it to the public to make a decision based on all the facts.  At this point, important facts regarding the costs the City may bear in resolving its obligations to the FMPA have yet to be identified.  Without this information, the meeting Stradley is planning for March 31 will likely be nothing more than a bashing of the FMPA and a pep rally for FPL.

Below is Utility Commission Chairman Scott Stradley’s letter to FMPA General Manager Nicholas Guarriello, including his attached resume.

Stradley 1Stradley 2

8 comments

  1. Mr Stradley’s letter to the FMPA appears to have several possible goals . By including his resume in his letter is Mr Stradley looking for a job ? Is Mr Stradley advertising his work history so he can get free publicity in a run for city council ? Is he trying to set up FMPA for a Wilson/Heran style tirade ? Is this Stradley’s attempt to embarrass FMPA ? If FMPA attended the meeting, you can be sure the Wilson /Heran crowd will pack the meeting with their “sell at any cost’ crowd. At the very least it looks like Mr Stradley wants more TV time so he can be the center of attention. When FMPA says it will not meet with FPL what makes him think that he can change FMPA’s position? The truth is ,he can’t.

  2. It looks like Mr. Stradley is looking for a job, if not with FPL then maybe with FMPA. The best thing the City Council could do is disband the Utility Commission. It is hard to believe that any competent person would task a group of part time activists with the sale of a 200 million dollar asset. The council should issue a purchase order to GAI consultants and Gray Robinson to evaluate the city’s options to include all financial, technical and legal aspects of a partial sale, total sale or any other options that may prove to be financially beneficial to the city. I prefer to deal with hard facts developed by an independent consulting firm rather then the politically motivated spin that is presently going on. To date the only hard facts the city has gathered is the appraisal of the utility system, presented, vetted, challenged and approved by all parties.

  3. Mr. Stradley is garnering no support from me. CPAs are talented people – at doing CPA work. Mr. Heran’s numbers have not added up. It’s nice Mr. Stradley’s goal is assuring economic stability to businesses in our community……but so far our way of life is being threatened due to possible $26 million “loan” from FPL, repayable by us all; franchise fees; FPL is under scrutiny of the State–which generally rules in their favor, thanks to lobbyists and money put in the right hands; the possibility of a large number of fast-moving trains that could slow commerce to a snail pace; and major changes in neighborhood zoning. The resolution of one issue alone does not assure a bright and beautiful future for our City. Sometimes the strategies of various groups remind me of the new “Dallas” series’ characters. And that’s not a compliment.

  4. Cathy Katroviz is being too kind in using the Dallas show analogy. Sitting on the sidelines for the past few years, I am only able to see a bad soap opera.

    Since the days of Woodward and Bernstein reporting on the Nixon administration, I have always used the “follow the money” analysis in assessing various schemes to get taxpayer dollars for personal benefit,

  5. I thought they were an advisory board to the city council. I don’t see on what authority he has a right to write this letter. Wouldn’t he have to have had permission by a council vote?

  6. Upon closer review of Stradley’s resume, one will notice that he claims to have served on the City of Vero Beach High Speed Rail Advisory Commission “from 2012 to 2013.” In truth, the formation of the Commission was approved by the City Council September 17, 2013. The first appointments to the Commission were made following the November 12 elections. The Commission did not begin its work until early January of this year. Stradley resigned in February, attending no more than a few meetings of the Commission.

  7. How very embarrassing. Such small minds. Does he wish to promote himself….like here comes the general with his troops.
    This behavior is so embarrassing for Vero Beach and Indian River County and will achieve nothing.

  8. As COVB leadership is engaging FMPA on April 2 to facilitate jump starting the stalled negotiations, the volunteer City Utilities Commission scheduled a 3/31 meeting to review the transaction, inviting both FPL and FMPA; for a transaction which has been tabled by the City Council. As an independent advisory Commission such is their discretion, but any recommendations on nebulous proposals, uncertain financials, and rejected by FMPA seem premature; and, perhaps, counterproductive. Occurs to me a more appropriate and productive dialogue would be between FPL and FMPA presenting at a City Council meeting after the April meeting.

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